New tax on data center power consumption takes effect slowly
Virginia collected about $26 million in July and August from a new tax on data center electricity consumption, far below the roughly $100 million initially projected. The article also highlights calls for a moratorium on new data centers and concerns that eastern Virginia lacks sufficient groundwater to support continued large-scale development.
Virginia’s new tax on data center electricity consumption is generating revenue more slowly than expected. The State Corporation Commission told the Senate budget committee that the tax was projected to raise about $100 million during its first two months, but collections for July and August totaled roughly $26 million.
The article also points to broader concerns about data center growth in Virginia. Sen. Russet Perry, D-Loudoun, is calling for a moratorium on new facilities, while water availability remains a concern because geologic formations in eastern Virginia may not be able to support the demands of the large data centers developers are proposing.